Zimbabwe’s largest seed maker, Seedco Limited will become the latest company to dump the Zimbabwe Stock Exchange (ZSE) and migrate to the Victoria Falls Stock Exchange (VFEX) following approval by the board.
SeedCo Limited will follow its spin-off, SeedCo International which migrated to the VFEX in 2020 becoming the first counter on the US-denominated bourse.
“Shareholders of Seed Co Limited (“the Company”) and the investing public are advised that the Board has approved the migration of the Company’s listing from the Zimbabwe Stock Exchange to the Victoria Falls Stock Exchange (“the Transaction”),” said company secretary Tineyi Chatiza.
“Accordingly, Shareholders are advised to exercise caution when dealing in the Company’s securities. Further announcements will be made in accordance with regulatory requirements as and when there are material developments.”
The ZSE has lost its glamour over the past three years due to the volatility of the Zimbabwean dollar which has been on a free-fall. This has rendered most stocks undervalued.
In the meantime, the VFEX, which was introduced more than two years ago, has been widely regarded as a preferable alternative because it is listed in steady US dollar currency.
Currently there are seven counters listed with several other companies such as Innscor, Axia and National Foods also set to start trading after announcing their migration from ZSE.